DCIT CEN CIR 4(2) CEN RG 4, MUMBAI V. USHDEV INTERNATIONAL LTD, MUMBAI

ITA 4161/MUM/2016

AI Insights

The case involves the Deputy Commissioner of Income Tax, Central Circle-4(2), Mumbai, as the appellant, challenging the order of the Commissioner of Income Tax (A)-6, Mumbai, which had favored M/s. Ushdev International Ltd., the respondent. The core issue was the deletion of an addition of Rs.2,13,34,684 made by the Assessing Officer, which was based on the enhancement of the gross profit of the assessee due to non-genuine purchases. The Tribunal referenced a prior resolution plan approved under the Insolvency and Bankruptcy Code, 2016, which extinguished all past liabilities not included in the plan.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 471094 (ITAT-MUMBAI)
• Duration Of Justice: 8 year(s) 3 month(s) 21 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 08-10-2024
• Appeal Filed By: Department
• Order Result: Dismissed
• Bench Allotted: B
• Next Hearing Date: 30-09-2024
• Assessment Year: 2009-2010
• Appeal Filed On: 17-06-2016
• Other Referred Cases: CIT-Vs-Durga Prasad 82 ITR 540
• Laws Referred To: Income Tax Act, 1961, Insolvency and Bankruptcy Code, 2016
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ASSESSEE
• Section: 143(3)

Judgement Text

"IN THE INCOME TAX APPELLATE TRIBUNAL \"B\" BENCH, MUMBAI SHRI PRASHANT MAHARISHI ACCOUNTANT MEMBER SHRI RAHUL CHAUDHARY, JUDICIAL MEMBER ITA No. 4161/MUM/2016 (Assessment Year: 2009-10) Deputy Commissioner of Income Tax Central Circle-4(2), Mumbai R. No. 1918, 19th Floor, Air India Building, Nariman Point, Mumbai - 400021 …………… Appellant M/s. Ushdev International Ltd. 6th New Harileela House, Mint Road, Fort, Mumbai – 400 001. [PAN: AAACU1672R] Vs ……………. Respondent Appearance For the Appellant/Assessee For the Respondent/Department : : Shri Vijay Bhatt Shri Ajay Singh Date Conclusion of hearing Pronouncement of order : : 30.09.2024 08.10.2024 O R D E R Per Rahul Chaudhary, Judicial Member: 1. By way of the present appeal the Revenue has challenged the order dated 22/04/2014 passed by the Commissioner of Income Tax (A)-6, Mumbai, [hereinafter referred to as the ‘CIT(A)’], whereby the Ld. CIT(A) had decided the appeal of the Assessee against the Assessment Order, dated 28/03/2014, passed under Section 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’). 2. The Revenue has raised following grounds of appeal : ITA No.4161/Mum/2016 Assessment Year: 2009-10 2 “1. On the facts and in the circumstances of the case and in law, the Ld. CIT(A), erred in deleting the addition of Rs.2,13,34,684/- made by the Assessing Officer by enhancing the gross profit of the assessee on the basis of non-genuine purchases booked by the assessee. 2. On the facts and in the circumstances of the case and in law, the Ld. CIT(A), erred in deleting the addition of Rs.2,13,34,684/- made by the Assessing Officer without considering the decision of Hon’ble Apex Court in the case of CIT-Vs-Durga Prasad 82 ITR 540 even when the assessee failed to prove the genuineness of transaction of produce the purchase parties.” 3. When the present appeal was taken up for hearing, a copy of common order, dated 29/04/20221, passed by the Tribunal in the case of the Assessee was placed on record. On perusal of the same we note that vide order, dated 14/05/2018, petition [CP No. 1790/I&BC/NCLT/MB/MAH/2017] filed by State Bank of India against the Assessee under Section 7 of the Insolvency and Bankruptcy Code, 2016 was admitted. Thereafter, vide order, dated 03/02/2022, passed in IA No. 1447/MB/C-II/2021 in CP(IB) No. 1790/MB/C-II/2017, resolution plan was approved by the National Company Law Tribunal, Mumbai Bench, Court II. As per the said order, all past liabilities arising out of any levies/tax dues to any government authority not forming part of the resolution plan and pertaining to pre- corporate insolvency resolution process period stand extinguished. In view of the aforesaid, the present appeal is 1 Passed in cross-appeals for Assessment Years 2008-09 (ITA No. 3209 & 3794 /Mum/2018), 2009-2010, (ITA No. 1770 & 1790/Mum/2018) 2010-11 (ITA No. 1771&1791/Mum/2018), and 2012-13 (ITA No. 1772 & 1792/Mum/2018), and Assessee’s Appeal for the Assessment Year 2011-2012 (ITA No. 2909 /Mum/2018), and 2014-2015 (ITA No. 2910/Mum/2018) ITA No.4161/Mum/2016 Assessment Year: 2009-10 3 disposed of as being infructuous with liberty to the Revenue to approach the Tribunal in case of variation/change in the order dated 03/02/2022 and/or the approved resolution plan. 4. In result, the appeal is dismissed. Order pronounced on 08.10.2024. Sd/- Sd/- (Shri Prashant Maharishi) Accountant Member (Rahul Chaudhary) Judicial Member म ुंबई Mumbai; दिन ुंक Dated : 08.10.2024 MP, LDC ITA No.4161/Mum/2016 Assessment Year: 2009-10 4 आदेश की प्रतितिति अग्रेतिि/Copy of the Order forwarded to : 1. अपील र्थी / The Appellant 2. प्रत्यर्थी / The Respondent. 3. आयकर आय क्त/ The CIT 4. प्रध न आयकर आय क्त / Pr.CIT 5. दिभ गीय प्रदिदनदध, आयकर अपीलीय अदधकरण, म ुंबई / DR, ITAT, Mumbai 6. ग र्ड फ ईल / Guard file. आिेश न स र/ BY ORDER, सत्य दपि प्रदि //True Copy// उप/सह यक पुंजीक र /(Dy./Asstt. Registrar) आयकर अपीलीय अदधकरण, म ुंबई / ITAT, Mumbai "